Which factor can significantly improve the accuracy of cost forecasts in PCMCS?

Using historical data analysis is crucial for enhancing the accuracy of cost forecasts in PCMCS because it leverages past data to identify trends, patterns, and cost behaviors. By analyzing historical data, users can gain insights into how costs have fluctuated over time in relation to various factors such as production levels, market changes, and economic conditions. This allows for more informed predictions regarding future costs, as it provides a baseline from which to forecast adjustments.

Moreover, historical data can help in understanding cost drivers and their relationships with different business variables, thereby improving the precision of cost estimates. Effectively, historical analysis transforms past experiences and outcomes into predictive data that is beneficial for strategic decision-making.